Ali Khamenei: Europeans Have Effectively Withdrawn from the JCPOA

On Thursday, March 21, 2019, the Supreme Leader of the Islamic Republic of Iran criticized Western countries, stating: "The Europeans have effectively withdrawn from the JCPOA, as they have not fulfilled their obligations under the agreement." Ayatollah Ali Khamenei emphasized in his Nowruz speech, delivered on the first day of the year in Mashhad, that "European countries should have stood against the United States after its withdrawal from the JCPOA, and the sanctions should have been completely lifted." He described the establishment of a special financial mechanism for Europeans as a "bitter joke" that he deemed "meaningless." The mechanism, known as INSTEX (Instrument in Support of Trade Exchanges), was recently launched by Germany, France, and the UK to mitigate the impact of U.S. sanctions against Iran. Members from France and Germany are present in its supervisory board, which is chaired by Per Fischer, the former head of Commerzbank in Germany. On the last working day of the Iranian year 1397, the Central Bank of Iran announced the registration of a corresponding company to INSTEX in Tehran aimed at "lifting the restrictions of the sanctions." The Iranian leader also stated in his speech, "We should not complain about sanctions; we should not expect anything from the sanctioners." According to Khamenei, "One can expect conspiracy, betrayal, and backstabbing from the West, but one cannot expect help and honesty from them." He emphasized that these criticisms do not mean severing ties with Western countries, as communication is not the issue, but rather "following and trusting" them is problematic. Referring to some analyses and statements from experts who have called 1398 the year of "threats," Khamenei said he "absolutely" does not accept these threats. He added: "Those who bring up threats to others are knowingly or unknowingly influenced by the enemy's bravado." He referred to some statements made by Donald Trump, the President of the United States, and John Bolton, the U.S. National Security Advisor, describing them as examples of "bravado" and called them "first-class fools." Khamenei had previously made similar remarks in December of the previous year. He named the year 1398 as the year of "opportunities, potentials, and openings" and clarified: "The main problem of the country is the economic issue and the livelihood of the weaker classes." He attributed "part of this problem to the sanctions of Western powers, namely the U.S. and Europe, and another part to the deficiencies and weaknesses in management within the country." Khamenei pointed out that "the main and fundamental issue is the revival of production," stating: "If production is revived, it will impact various sectors, including employment, inflation control, budget balance, and the increase in the national currency's value, thus alleviating economic problems." How will the Iranian economy be after sanctions? The Research Center of the Islamic Consultative Assembly had previously predicted in a report, based on two optimistic and pessimistic scenarios, that Iran's economic growth in 1398 would be -3.8% in the first scenario and -5.5% in the second scenario. These scenarios were formulated based on oil sales and the cooperation or resistance of European countries with the U.S. in sanctions against Iran. In another part of his speech in Mashhad, the Supreme Leader described Western politicians as "truly savage at heart." He explained this statement by referring to the massacre of Muslims in New Zealand, saying: "In the recent New Zealand incident, Western politicians and media refused to label it as a terrorist act and called it an armed movement instead." Ayatollah Khamenei stated that there is no country as "bad as the Saudi government." He mentioned: "They have announced that they will build a nuclear power plant and missile production centers for this government. That is fine because it is dependent on and belongs to them." The Iranian leader welcomed the construction of a nuclear power plant in Saudi Arabia, stating: "I personally am not upset because I know that in the not-too-distant future, it will fall into the hands of Islamic fighters." After the conflicts in Syria and Yemen, relations between Iran and Saudi Arabia have soured, and officials from both countries have repeatedly taken stances against each other. Iranian officials accuse Saudi Arabia of supporting fundamentalism in the region and opposing the Islamic Republic's government. In response, Saudi officials reject these accusations, stating that the Islamic Republic of Iran is the "largest supporter of terrorism" and a source of instability in the region.